Downtown Brewery Conversion
For Sale
$2,183,000
123 Hay Street Unit 123, Fayetteville, NC 28301
Open interior includes walk-in coolers, a finished bar area, and existing brewery infrastructure.
Property Size10,924 SF
Price / SF$199.84
Days on Market214
Property Features for 123 Hay Street Unit 123
General Information
Standard status
Active
Size
10,924 SF
Property subtype
Retail
Additional Details
Equipment Included
No
Amenities
Central Air, Electric
3
DT - Downtown
Level
Level.
Building Details
Year Built
1900
Listing Agency:
FRANKLIN JOHNSON COMMERCIAL REAL ESTATE
(910) 818-8400
Listed By:
FRANKLIN JOHNSON · License #146789
(910) 818-8400
Source:
Xome
Added: Jan 29
Changed: Aug 30
Last Checked: Aug 30 at 3:50PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of FRANKLIN JOHNSON COMMERCIAL REAL ESTATE
Investment Insights
Based on property information with market context.
This downtown commercial property was originally built out for brewery use and retains supporting infrastructure, walk-in coolers, and a finished bar area. Brewery equipment is not included. The open interior provides a flexible foundation for continued brewery use or adaptation to restaurant and bar operations.
Located at 123 Hay Street in downtown Fayetteville, the property is positioned within an active setting described as having foot traffic and surrounding activity. The building dates to 1900 and includes central air and electric service. A future upstairs buildout is identified as a potential way to add bar or lounge space.
Located at 123 Hay Street in downtown Fayetteville, the property is positioned within an active setting described as having foot traffic and surrounding activity. The building dates to 1900 and includes central air and electric service. A future upstairs buildout is identified as a potential way to add bar or lounge space.
Key Highlights
- Originally built out for brewery use
- Walk‑in coolers remain in place
- Finished bar area included
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$157,778
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.23%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,155,560
$3.2M
Cap Rate 7%
$2,253,971
$2.3M
Cap Rate 9%
$1,753,089
$1.8M
Market Conditions
NOI Build-Up for 10,924 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$222.8K $20.40/SF
− Vacancy
−$12.5K −$1.14/SF
EGI
$210.4K $19.26/SF
− OpEx
−$52.6K −$4.81/SF
NOI
$157.8K $14.44/SF
Area
Fayetteville, NC
Vacancy
5.60%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,155,560
Cap Rate 7%
$2,253,971
Cap Rate 9%
$1,753,089
Alternative Uses
Best Use
Specialty Retail
$2.25M
$1.97M – $2.63M
NOI $157,778 @ 7.0% cap · market cap 7.23%
Second Best
Industrial
$1.59M
$1.39M – $1.85M
NOI $111,178 @ 7.0% cap · market cap 5.09%
Theoretical Best
Office A
$2.39M
$2.09M – $2.79M
NOI $167,583 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,974
Businesses Nearby
Explore this area
Business Placement
Demographics for 28301, NC
17,670
Population
8,590
Households
2.1
Avg Household Size
35
Median Age
17%
College-Educated
88%
High-School Grad
12.4 sq mi
ZIP Area
1,425
Density / Sq Mi
$36,955
Median Household Income
$28,350
Median Earnings
$926
Median Rent
$109,900
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Brewery - Open interior includes walk-in coolers, a finished bar area, and existing brewery infrastructure.
Where is this brewery located?
The property is located at 123 Hay Street Unit 123 Fayetteville, NC.
What is the asking price?
The asking price for this property is $2,183,000.
What are key features of this property?
This property features: Originally built out for brewery use; Walk‑in coolers remain in place; Finished bar area included
